A negative balance in your Squarespace Payments account occurs when your total balance falls below zero dollars, typically due to refunds or chargebacks. Here's what you need to know about managing and resolving negative balances.

Key Terms to Understand:

• Total Payment Volume: Gross sales processed in the last 30 days (excluding refunds and charges)
• Currently in Process: Completed payments being processed through the card network
• Next Payment: Initiated transfers in transit to your connected bank account

How Negative Balances Work:

• Negative balances can be cleared using pending sales funds
• If negative at midnight UTC, funds are automatically debited from your linked bank account
• Automatic debits occur on the next business day

Failed Automatic Debits:

• Occurs due to insufficient funds or closed bank accounts
• Prevents refunds and transfers until resolved
• System attempts up to three more debits after bank account update
• Account suspension occurs if unresolved after 20 business days

Resolving Failed Debits:

1. Update your connected bank account
2. Wait for successful automatic debit test
3. Receive email confirmation when balance is cleared
4. If resolved before automatic debit, funds will transfer normally

During Account Suspension:

• Online store cannot accept payments
• Limited dashboard access available
• You'll receive email instructions for next steps
• Must clear negative balance to lift suspension

This system ensures financial stability and proper handling of payment processing while maintaining security standards for all transactions.

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